Clowns-R-Us Reported the Following in the Statement of Comprehensive Income

question 31

Multiple Choice

Clowns-R-Us reported the following in the statement of comprehensive income for the year ended December 31: $$\begin{array} { l r } \text { Income from continuing operations before tax } & \$ 800,000 \\\text { Income tax expense } & ( 300,000 ) \\\text { Net income } & 500,000 \\\text { Other comprehensive income } & 130,000 \\\text { Comprehensive income } & 600,000\end{array}$$ During the year, the company paid $103,000 in dividends and purchased treasury stock with a par value of $20,000 at a cost of $95,000. If the balance of Retained Earnings at the beginning of the year was $470,000, what is the balance of Retained Earnings at the end of the year?

• A) $1,007,000
• B) $970,000
• C) $867,000
• D) $1,110,000

---

Definitions:

Safe Cash Payments

Transactions made in cash that are secure and minimize the risk of theft or loss.

Liquidation Expenses

Costs associated with winding up a company's operations, selling off assets, and paying off creditors in the event of liquidation or bankruptcy.

Profits and Losses

The financial results of a company's operations, indicating the net money made or lost within a specific period.

Liquidation Expenses

Costs associated with winding down a company's operations, including paying off debts and distributing remaining assets to shareholders.